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C&C’s results delay is embarrassing – and a cause for concern

Why has a public company missed arguably its most important accounting deadline of the year?

C&C counts Bulmers cider in Ireland among its brands. Photograph: Bryan O’Brien

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Cantillon
Tue May 14 2024 - 06:00

It’s a while since C&C was in the news over here. The drinks maker, which counts Bulmers cider in Ireland, Magners in the UK and Tennent’s lager among its many brands, has somewhat faded from view since it shifted its stock market listing to the UK from Ireland in 2019. It remains however, very much an Irish company.

The stock market reaction to the company’s announcement last week that it was delaying its full-year results, originally scheduled for May 23rd, has been muted so far, Still, it will be deeply embarrassing for the company.

C&C bosses would have known well in advance when the results were due. The earnings would have been worked on for weeks ahead of time. Needing to push back because of an accounting issue – C&C said the delay was due to the company needing more time to finish “a review of certain non-cash accounting measurements relating to previous financial periods” – is a concern regardless of how much money is ultimately at stake.

[ C&C delays publishing full-year results ]

From the outside, the issue appears to be around the valuation of certain assets, rather than the performance of the company itself. It also relates to financial years prior to the one that ended in February this year. This would appear to put some focus on chief executive Patrick McMahon. He was chief financial officer (CFO) from 2020, and combined that role along with the top job until Andrew Andrea was hired to lead the finance function from March this year.

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The delay so far has been a minor one, but it’s not the first C&C misstep in recent years. A year ago the company said it would take a €25 million charge related to a systems upgrade at its Matthew Clark and Bibendum units. At that time David Forde quit as chief executive with immediate effect and McMahon suddenly took over. A year later he no doubt would have wanted his first full-year earnings as chief executive (he was in charge five days when announcing results last year) to go smoothly. It may still, but we’ll have to see the results first.

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